The International Monetary Fund will grant Russia a $17bln as part of its $650bln Special Drawing Rights (SDRs) giveaway to help poorer countries recover from the COVID crisis more quickly.
Russia doesn’t need to convert these SDRs though. The country has significant international reserves and doesn’t need any cash. There is a fresh proof of this statement.
Vladimir Putin has called yesterday for one-off cash payments to be awarded to Russia’s pensioners ($135 each) and military service personnel ($200). These two categories represent about 40% of people eligible to vote in the coming Duma election.
So, Putin can spend about $7bln in one pre-election move. Not during Covid, when Russians needed support and many called for it, but now, one month prior to the elections in order to buy some votes. There are no usual worries about the inflation, Nabiullina is keeping silence.
Russians are indeed very poor because of practical social Darwinism of its elites, but Russia as a country certainly isn’t. Money isn't the problem, greed of the elites is.
Russia doesn’t need to convert these SDRs though. The country has significant international reserves and doesn’t need any cash. There is a fresh proof of this statement.
Vladimir Putin has called yesterday for one-off cash payments to be awarded to Russia’s pensioners ($135 each) and military service personnel ($200). These two categories represent about 40% of people eligible to vote in the coming Duma election.
So, Putin can spend about $7bln in one pre-election move. Not during Covid, when Russians needed support and many called for it, but now, one month prior to the elections in order to buy some votes. There are no usual worries about the inflation, Nabiullina is keeping silence.
Russians are indeed very poor because of practical social Darwinism of its elites, but Russia as a country certainly isn’t. Money isn't the problem, greed of the elites is.